Blue Earth (BBLUQ) 10-Q/A 15 Oct 15 2015 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2015shares
Document and Entity Information
Entity Registrant Name	Blue Earth, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,422,109
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	94,531,461
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	bblu

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 2,005,330	$ 2,883,621
Restricted cash	20,027	632,102
Accounts receivable, net	3,857,138	1,739,822
Costs and revenues in excess of billings	903,117	3,967,207
Inventory, net	475,714	352,862
Construction in progress	71,128	68,213
Other receivables	114,030	78,926
Prepaid expenses and deposits	2,345,219	1,639,531
Assets of discontinued operations	995,583	1,221,631
Total Current Assets	10,787,286	12,583,915
PROPERTY AND EQUIPMENT, net	65,654,593	56,815,626
OTHER ASSETS
Deposits	51,544	80,455
Natural gas futures	2,251,711	2,426,266
Long term receivables	1,293,987	1,587,548
Equity method investment	8,461,352	9,353,402
Contracts and technology, net	17,198,441	19,296,534
Total Other Assets	29,257,035	32,744,205
TOTAL ASSETS	105,698,914	102,143,746
CURRENT LIABILITIES
Accounts payable	3,877,887	3,933,969
Current portion of notes payable	427,869	121,466
Related party payables	1,333,147	1,333,147
Line of credit payable	3,000,000
Convertible note payable	9,084,120
Accrued expenses	3,326,926	2,857,597
Payroll expenses payable	261,338	167,780
Liabilities of discontinued operations	937,134	354,665
Total Current Liabilities	22,248,421	8,768,624
LONG TERM LIABILITIES
Total Liabilities	$ 22,248,421	$ 8,768,624
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock value	$ 400
Common stock value	94,532	$ 94,259
Additional paid-in capital	193,046,894	188,159,932
Stock subscription receivable	2,000,000
Accumulated deficit	(107,691,333)	(94,879,069)
Total Stockholders' Equity	83,450,493	93,375,122
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 105,698,914	$ 102,143,746

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Balance Sheet
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	400,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	94,531,461	94,258,713
Common stock, shares outstanding	94,531,461	94,258,713

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement
REVENUES	$ 3,576,400	$ 1,889,184	$ 7,328,414	$ 3,768,352
COST OF SALES	3,208,867	1,569,616	6,631,211	2,821,242
GROSS PROFIT	367,533	319,568	697,203	947,110
OPERATING EXPENSES
Depreciation and amortization	1,075,146	1,076,938	2,156,725	2,025,758
General and administrative	5,219,864	3,769,113	10,296,244	8,794,021
Total Operating Expenses	6,295,010	4,846,051	12,452,969	10,819,779
LOSS FROM OPERATIONS	(5,927,477)	(4,526,483)	(11,755,766)	(9,872,669)
OTHER INCOME (EXPENSE)
Other income	2,198	1,356	3,138	2,296
Income (loss) from equity investment	(1,064,490)		(1,292,050)
Interest expense	247,993	95,463	669,334	325,470
Mark futures to market	8,284		174,555
Gain (loss) on sale of assets	1,483	2,802	9,470	11,235
Gain (loss) on settlement of litigation	988,882		1,978,660
Total Other Income (Expense)	(328,204)	(91,305)	(144,671)	(309,137)
LOSS BEFORE INCOME TAXES	$ (6,255,681)	$ (4,617,788)	$ (11,900,437)	$ (10,818,806)
INCOME TAX EXPENSE
LOSS FROM CONTINUING OPERATIONS	$ (6,255,681)	$ (4,617,788)	$ (11,900,437)	$ (10,818,806)
Loss on disposal of discontinued operations	0	0	0	0
Other loss from discontinued operations	(249,700)	(94,052)	(911,827)	(216,495)
Income (Loss) from Discontinued Operations	(249,700)	(94,052)	(911,827)	(216,495)
NET LOSS	(6,505,381)	(4,711,842)	(12,812,264)	(10,398,302)
PREFERRED DIVIDENDS		(1,096,815)		(1,489,703)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (6,505,381)	$ (5,808,657)	$ (12,812,264)	$ (11,888,005)
BASIC AND DILUTED LOSS PER SHARE	$ (0.07)	$ (0.07)	$ (0.14)	$ (0.16)
Continuing operations loss per share	(0.07)	(0.07)	(0.13)	(0.16)
Discontinued operations loss per share	$ 0	$ 0	$ (0.01)	$ 0
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED	93,238,604	65,782,587	93,772,326	63,866,054

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES
NET LOSS	$ (12,812,264)	$ (10,398,302)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock option and stock warrants issued for services	2,152,498	2,010,037
Income (loss) from equity investment	(1,292,050)
Impairment of inventory	369,039
Mark gas futures to market	174,555
Gain (loss) on settlement of litigation	1,978,660
Gain (loss) on sale of assets	9,470	11,235
Stock issued for services	567,104	1,327,034
Depreciation and amortization	2,156,725	2,282,386
Amortization of debt discount	1,512,953
Changes in operating assets and liabilities:
Accounts receivable and billings in excess	1,240,336	(1,173,880)
Inventory	(122,852)	40,037
Restricted cash	612,075
Construction in progress	(371,955)	(171,226)
Prepaid expenses and deposits	(288,341)	328,657
Accounts payable and accrued expenses	506,805	(1,227,546)
Net Cash Used in Operating Activities	(4,753,575)	(6,994,038)
Net Cash Provided by Discontinued Operating Activities	245,825	317,341
INVESTING ACTIVITIES
Collection of other receivables	90,831
Proceeds from sale of equipment	9,470
Purchase of equity method investment	400,000
Lending of other receivables		61,795
Purchase of property and equipment	8,730,449	2,688,446
Net Cash Used in Investing Activities	(9,030,148)	(2,626,651)
Net Cash Provided by (Used in) Discontinued Investing Activities	278,591	(17,882)
FINANCING ACTIVITIES
Proceeds from warrants and options exercised		5,568,957
Cash received on stock subscriptions		1,145,880
Proceeds from line of credit, net	2,911,700
Proceeds from notes payable, net	9,953,068	183,622
Repayment of notes payable and line of credit	228,941	1,398,039
Repayment of related party loans		4,004
Net Cash Provided by Financing Activities	12,635,827	5,496,416
Net Cash Used in Discontinued Financing Activities	(107,368)	(127,785)
NET INCREASE (DECREASE) IN CASH	(878,291)	(3,952,599)
CASH AT BEGINNING OF PERIOD	2,883,621	8,373,380
CASH AT END OF PERIOD	2,005,330	4,420,781
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for Interest	96,438	136,447
NON CASH FINANCING ACTIVITIES:
Common stock issued for conversion of preferred stock		1,884,095
Common stock cancelled for settlement litigation	(2,028,658)
Common stock issued for acquisition of subsidiary		4,602,500
Preferred stock issued as collateral for loan	400
Debt discount and conversion feature	2,152,498
Debt issued for equipment		$ 137,693
Debt issuance costs paid by stock	226,000
Common stock issued for subscription receivable	$ 2,000,000

Condensed Financial Statements

Condensed Financial Statements	6 Months Ended
	Jun. 30, 2015
Notes
Condensed Financial Statements	NOTE 1 - CONDENSED FINANCIAL STATEMENTS The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2015 and 2014, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2014 audited financial statements, as amended. The results of operations for the periods ended June 30, 2015 and 2014 are not necessarily indicative of the operating results for the full year.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Notes
Significant Accounting Policies	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Inventory Inventory is recorded at the lower of cost or market (net realizable value) using the average cost method. The inventory on hand as of June 30, 2015 consists of battery and battery components of $475,714. The inventory is valued net of an allowance of $6,188 as of June 30, 2015. The Company does not have any work in progress. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Construction Revenues Service Contracts Product Sales Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had, nor is expected to have a material impact on the Company’s financial position, or statements. Capitalization of Construction Period Interest The Company capitalizes construction period interest as required under ASC 835-20. Both directly attributable borrowing costs and borrowing costs from a general fund are required to be capitalized. Until March 2015, the Company had no material interest expense. During March 2015, the Company borrowed $13,000,000 in part to fund the construction of its CHP projects. The convertible note payable and the credit line payable accrue interest at 12% per annum. The Company will capitalize the appropriate interest cost in accordance with ASC 835-20-25-8 through the completion of the construction of each project. The Company capitalized interest of $1,420,890 during the six months ended June 30, 2015.

Significant Events Disclosure

Significant Events Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Significant Events Disclosure	NOTE 3 - SIGNIFICANT EVENTS Settlement of Litigation and Disputes During the six month period ended June 30, 2015, the Company received 2,190,484 shares of its common stock in settlement of two separate litigations and disputes valued at $0.926 per share resulting in a net gain on settlement of litigation of $1,978,658. On August 8, 2015, the Company and two consultants received the award from the arbitrator in the Company's arbitration with two of its consultants/former employees, who had voluntarily resigned. The arbitrator awarded the two consultants damages of $1,270,000; $101,243 for breach of contract; certain declaratory relief upholding the validity of the consulting agreement; and reimbursement of the consultants' attorney's fees and costs incurred in the arbitration of $341,375. Common Stock Transactions During the six months ended June 30, 2015, the Company issued 596,565 common shares for services valued at $567,104. The Company also issued 200,000 common shares for debt issuance costs valued at $226,000. The Company cancelled the 2,190,484 shares of its common stock it received in settlement of litigation. The Company issued a stock subscription of $2,000,000 for 1,666,667 shares of its common stock and for warrants to purchase an additional 833,334 shares of common stock for $1.60 per share. The warrants are exercisable beginning six months from the issuance date and ending 5 years after they become exercisable. Credit Line Payable During the six months ended June 30, 2015, the Company borrowed $3,000,000 on the line of credit. The line of credit is for up to $4,000,000 subject to approval of the use of proceeds by the lender. The line of credit accrues interest at 12% per annum and is secured by the Sumter Heat and Power CHP plant and the Melga Solar Project. The Company received net proceeds of $2,911,700 after closing costs. The Company has issued 400,000 shares of Class D convertible preferred stock as tertiary collateral for the line of credit. The $88,300 of fees withheld from the proceeds of the line of credit are included in prepaid expenses and are being amortized over the term of the line of credit. CHP Plant Energized On March 30, 2015 the Company energized its initial combined heat and power (“CHP”) energy plant at a poultry processing facility in Sumter, South Carolina. The Company owns and operates the energy plant which provides combined heat and power (CHP) solutions. Electricity is generated and the thermal heat from the generator is captured and utilized for processes in the poultry facility, lowering energy costs, reducing greenhouse gas emissions and improving energy efficiency. The Company realized the first revenues from CHP during June 2015. Series D Preferred Stock The Company has issued 400,000 shares of its $10.00 per share Series D preferred stock as tertiary collateral against the line of credit. The Series D preferred shares are issued, but not presently outstanding. The Series D preferred shares certificate is held by a third party and the lender does not have access to the certificate without the consent and cooperation of the Company. Solely in the event of a default by the Company of its payment obligations under the terms of the line of credit, a block of the Series D preferred shares would be released and converted into common shares in accordance the formula provided in the line of credit agreement. The sufficient common shares would be sold by the lender to cure the default. Upon the repayment of the line of credit the Series D preferred stock will be returned to the Company and cancelled. The Series D preferred shares are convertible into the Company’s common stock by dividing the amount of any payment under a monetary default by the average closing price of the Company’s common stock for 10 business days immediately prior to a conversion, but in no event to exceed 2,500,000 shares until first obtaining shareholder approval. Related Party Notes Payable The related party notes payable, totaling $1,333,147, are due on demand, accrue interest at 12% per annum and are unsecured. Convertible Note Payable During the six months ended June 30, 2015, the Company borrowed $10,000,000 on a convertible note payable. The note payable was convertible into shares of the Company’s common stock at $1.00 per share. However, on May 13, 2015, the convertible note payable was amended to increase the conversion price to $1.02 per share. The convertible note payable accrues interest at 12% per annum and is due on September 10, 2015. The convertible note payable is secured by all the assets of the Company except for the Sumter Heat and Power CHP plant and the Melga Solar Projectand is also guaranteed by each of the Company’s Subsidiaries, other than the two just mentioned. The Company received net proceeds of $9,953,068 after closing costs. The $46,932 in legal fees withheld from the loan proceeds are included in prepaid expenses and are being amortized over the 6 month term of the convertible note payable. The lender received 200,000 shares of common stock valued at $226,000 as consideration for making the loan. The lender also received 2,000,000 warrants to purchase shares of the Company’s common stock at $1.02 per share (amended from $1.00 per share). The value of the warrants measured by the Company was $1,321,600. The value was computed using the Black-Scholes formula with a 5 year maturity, 1.62% risk free rate and a 94.46% volatility. The lender also received the right to purchase shares of the Company’s common stock at $1.02 per share (amended from $1.00 per share) upon the Company’s repayment of all or part of the convertible note payable. The value of the right to purchase common shares measured by the Company was $649,091. The value was computed using the Black-Scholes formula with a 1 year maturity, .25% risk free rate, a 87.06% volatility and a 5% probability of exercise. The total discount on the convertible note payable of $2,196,691 is being amortized over the 6 month term of the debt. The Company recorded $1,280,811 of capitalized interest expense from the amortization of the discount during the six months ended June 30, 2015. The following is a summary of convertible note payable the period ended June 30, 2015: Balance at December 31, 2014 $ -- Borrowing of convertible note payable 10,000,000 Discount on convertible note payable (2,196,691) Amortization of discount 1,280,811 Balance at June 30, 2015 $ 9,084,120

Stock Purchase Warrants and Opt

Stock Purchase Warrants and Options Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Stock Purchase Warrants and Options Disclosure	NOTE 4 - STOCK PURCHASE, WARRANTS AND OPTIONS A summary of the Company’s warrant activity during the periods ended June 30, 2015 and December 31, 2014 is presented below: Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Warrants Price Term Value Balance Outstanding, December 31, 2013 22,660,668 $ 1.90 6.52 $ 43,055,269 Granted 200,000 $ 0.00 10.00 Granted 100,000 $ 1.00 10.00 Granted 8,521,654 $ 6.00 3.00 Cancelled (3,600,000) $ (1.18) -- Forfeited (1,472,060) $ (1.90) -- Exercised (9,778,344) $ (1.60) -- Balance Outstanding, December 31, 2014 16,631,918 $ 3.80 5.29 $ 53,353,862 Granted 2,000,000 $ 1.00 5.00 Granted 300,000 $ 1.08 5.00 Granted 833,334 $ 1.60 5.00 Balance Outstanding, June 30, 2015 19,765,252 $ 3.16 4.41 $ 62,385,196 Exercisable, June 30, 2015 16,724,775 $ 3.38 3.94 $ 56,467,004 A summary of the Company’s option activity during the periods ended June 30, 2015 and December 31, 2014 is presented below: Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Options Price Term Value Balance Outstanding, December 31, 2013 1,011,290 $ 1.85 8.22 $ 1,851,695 Granted 1,500,000 $ 2.00 10 Granted 150,000 $ 3.00 10 Granted 120,000 $ 2.45 10 Granted 60,000 $ 2.27 10 Granted 105,000 $ 3.10 10 Granted 60,000 $ 2.45 10 Granted 100,000 $ 2.54 10 Granted 10,000 $ 1.29 10 Granted 52,720 $ 1.37 10 Granted 5,000 $ 0.75 10 Forfeited (492,119) $ (3.37) -- Exercised (85,024) $ (1.36) -- Balance Outstanding, December 31, 2014 2,596,867 $ 2.54 8.82 6,596,037 Granted 30,000 $ 1.20 10 Granted 100,000 $ 1.01 10 Granted 12,500 $ 1.21 10 Granted 5,000 $ 0.98 10 Granted 15,000 $ 0.97 10 Granted 7,500 $ 0.90 10 Granted 5,000 $ 0.92 10 Granted 35,000 $ 1.11 10 Granted 74,000 $ 1.15 10 Forfeited (68,513) $ (2.24) -- Balance Outstanding, June 30, 2015 2,812,354 $ 2.42 8.41 $ 6,804,139 Exercisable, June 30, 2015 1,379,194 $ 1.96 8.01 $ 2,697,170

Fair Value of Financial Instrum

Fair Value of Financial Instruments Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Fair Value of Financial Instruments Disclosure	NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows the provisions of ASC 820 for fair value measurements of all nonfinancial assets and nonfinancial liabilities not recognized or disclosed at fair value in the financial statements on a recurring basis. The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. There were no changes in the valuation techniques during the periods ended June 30, 2015 and December 31, 2014. The estimated fair value of certain financial instruments, including cash and cash equivalents and current liabilities, are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Assets: On December 15, 2014, the Company purchased 639.25 natural gas option contracts for $2,429,150, to mitigate its exposure to fluctuations in natural gas price in connection with its CHP facility in Alberta, Canada. The gas delivery dates range from January 1, 2016 to December 31, 2022. At each reporting date the Company revalues the options to the NYMEX-NG last trade value. The Company recorded a loss of $174,555 and $-0- for the six months ended June 30, 2015 and 2014, respectively, on the value of contracts. Assets measured at fair value on a recurring and non-recurring basis consisted of the following at June 30, 2015: Liabilities: Total Carrying Value at June 30, 2015 (Level 1) (Level 2) (Level 3) Natural gas futures $ 2,251,711 $ 2,251,711 $ - $ - The following is a summary of activity of Level 1 assets for the periods ended June 30, 2015 and December 31, 2014: Balance at December 31, 2013 $ -- Purchases of futures contracts 2,429,150 Change in fair value 2014 (2,884) Balance at December 31, 2014 2,426,266 Purchases of futures contracts -- Change in fair value 2015 (174,555) Balance at June 30, 2015 $ 2,251,711

Property and Equipment Disclosu

Property and Equipment Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Property and Equipment Disclosure	NOTE 6 - PROPERTY AND EQUIPMENT The major classes of assets as of June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 December 31, 2014 Office and computer equipment $ 350,609 $ 327,023 Software 91,256 91,256 Manufacturing and installation equipment 455,150 442,450 Leasehold improvements - 759,304 Cogeneration plants 65,332,429 56,022,580 Vehicles - - Sub Total 66,231,444 57,642,613 Accumulated depreciation (576,851) (826,987) Net $ 65,654,593 $ 56,815,626 Depreciation expense was $58,634 and $66,316, for the six months ended June 30, 2015 and 2014, respectively. Approximately $65,908,133 of the Company’s property and equipment serves as security against its debt. Depreciation of the cogeneration plants commenced when the Sumter plant was placed in service during the second quarter of 2015. Depreciation on additional plants will commence when they are placed in service.

Commitments and Contingencies D

Commitments and Contingencies Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Commitments and Contingencies Disclosure	NOTE 7 - COMMITMENTS AND CONTINGENCIES Arbitrations During 2014, the Company and two consultants filed demands for arbitration with the American Arbitration Association. On August 8, 2015, the Company and two consultants received the award from the arbitrator in the Company's arbitration with two of its consultants/former employees, who had voluntarily resigned. The arbitrator awarded the two consultants damages of $1,270,000; $101,243 for breach of contract; certain declaratory relief upholding the validity of the consulting agreement; and reimbursement of the consultants' attorney's fees and costs incurred in the arbitration of $341,375. The award is a Type 1 subsequent event accordingly the Company’s financial statements are restated to reflect the award on a retroactive basis. During 2014 the Company filed a demand for arbitration with the American Arbitration Association and National Energy Partners LLC (“NEP”) and its subsidiary, Hawaii Solar LLC (“HS”) counterclaimed. The Company subsequently initiated two actions in the First Circuit Court of the State of Hawaii, the first titled Xnergy and Blue Earth, Inc. vs. Hawaii Solar, LLC. National Energy Partners, LLC, et al., Civil No. M-1-1694-08 (JHC) (the “Xnergy Action’) and the second titled Blue Earth Solar, Inc. vs. State of Hawaii, Department of Education, et al. The parties agreed to attempt to resolve their dispute through arbitration administered by Dispute Prevention and Resolution (“DPR Arbitration”). On August 30, 2015, the parties to the above Xnergy Action, DOE Action and DPR Arbitration entered into a Settlement Agreement and Release and a Lock-Up/Leak-Out Agreement conditioned upon subsequent Board of Directors approval by the Company which was obtained on September 3, 2015. The Settlement Agreement provides for the Company to: (a) pay $500,000 to HS (a portion of which will be paid by the Company’s insurance carrier), and (b) issue shares valued at $325,000 at a price of $0.88 per share to be registered with the SEC within sixty (60) days of the issuance of the shares. Pursuant to the terms and conditions of the Lock-Up/Leak-Out Agreement, all shares will be restricted for six (6) months, unless registered sooner and upon registration or expiration of the six-month period, seller may sell up to 10,000 shares per day and 50,000 shares per week on a non-cumulative basis. The parties exchanged mutual releases and will dismiss all claims upon payment to HS. The settlement is a Type 1 subsequent event accordingly the Company’s financial statements are restated to reflect the award on a retroactive basis. Equipment Purchase Commitments The Company has entered into equipment purchase agreements whereby it has committed to paying approximately $19,536,518 for electrical co-generation equipment. The Company has made deposits of approximately $16,183,490 (83% of the total commitment) toward the purchase of the equipment which is included in construction in progress-property and equipment. The balance of the purchase price will be due upon acceptance of the equipment by the Company in accordance with progress payments as set out in the purchase contracts. Pending Litigation On October 24, 2014, a purported class action lawsuit was filed against the Company, two executive officers, and one non-executive officer in the U.S. District Court for the Central District of California (Case No:2:14-cv-08263). On January 21, 2015, the court appointed a Lead Plaintiff and Lead Plaintiff’s Counsel. The Court also re-captioned the case In re Blue Earth, Inc. Securities Litigation On August 31, 2015, a derivative lawsuit was filed in Nevada state court, captioned Powell v. Cagan, et al., No. A-15-723839-C (8th Judicial District Court, Clark County, Nevada). It names as defendants Brett Woodard, Johnny R. Thomas, John C. Francis, and the entire Board of Directors. It also names the Company as a nominal defendant. The complaint brings claims for breaches of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets, from October 2013 to the present based on directors and management allegedly allowing the company to make false and misleading statements to the public, thereby resulting in a class action lawsuit and exposing the Company to damages. The defendants have not yet been served. The Company believes the claims contained in the complaint are without merit and will vigorously defend this matter.

Discontinued Operations Disclos

Discontinued Operations Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Discontinued Operations Disclosure	NOTE 8 - DISCONTINUED OPERATIONS During April 2015, the Company’s Board of Directors determined to focus the Company’s financial resources on its business units that are scalable. Accordingly the Board of Directors decided to discontinue the Blue Earth Energy Management Services, Inc. (BEEMS) subsidiary. The decision was to sell any parts of BEEMS for which a buyer could be found and to shut down those parts that were not salable. On May 22, 2015, the Company entered into an Asset Purchase Agreement (the Agreement) for the website component of BEEMS. Pursuant to the Agreement, the buyers purchased from the Company, the website, the related inventory and certain intangible assets for cash of $450,000 and $125,000 in the form of a promissory note. Accordingly, the Company’s financial statements have been retroactively restated for all periods presented to reflect the assets, liabilities and operations of BEEMS as discontinued. On July 31, 2015, the Company entered into an Asset Purchase Agreement (APA) for the service component of BEEMS. Pursuant to the APA, the buyers purchased the service vehicles, service assets and contracts and related inventory for cash of $216,711 plus a two-year earn-out agreement for up to an additional $250,000. The following is a summary of the transaction: The following is a summary of the transactions: Sales Price $ 790,771 Inventory (105,612) Intangible assets (245,825) Commission paid (40,250) Vehicles net book value (38,082) Gain on sale of website and service and installation division 361,002 Impairment of net assets of BEEMS (956,618) Loss on Disposal of Discontinued Operations $ (595,616) Revenues of the discontinued operations were $3,227,539 and $3,026,437 during the six months ended June 30, 2015 and 2014, respectively.

Operating Segments Disclosure

Operating Segments Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Operating Segments Disclosure	NOTE 9 - OPERATING SEGMENTS Operating segments are defined as components of an enterprise about which separate and discreet financial information is available and is evaluated regularly by the chief operating decision-maker in assessing performance and determining how to best allocate Company resources. The Company’s chief operating decision makers direct the allocation of resources to operating segments based on the business plan, budgets, profitability and cash flows of each respective segment. The Company historically has had two principal operating segments: (1) technology and (2) construction of energy facilities owned by third parties. During the second quarter of 2015, a third segment was introduced when power and heat was produced from facilities built and owned by the Company. These operating segments were delineated based on the nature of the products and services offered. The Company evaluates the financial performance of the respective segments based on several factors, of which the primary measure is business segment income before taxes. All significant intercompany transactions and balances have been eliminated. No restatement of prior period operating segments is necessary as a result of the new third segment. The following tables show the operations of the Company’s reportable segments for the six months ended June 30, 2015 and 2014: Heat and Power Technology Construction Production Corporate Consolidated June 30, 2015 Revenues $ 248,270 $ 7,078,545 $ 1,599 $ - $ 7,328,414 Cost of Sales 232,591 6,398,620 - - 6,631,211 Depreciation and amortization 449,315 937,210 549 769,651 2,156,725 General and administrative 1,268,165 3,479,360 13,893 5,534,825 10,296,244 Other income (expense) (43,131) 8,870 (174,554) 64,143 (1,444,671) Discontinued operations - - - (911,827) (911,827) Net income (loss) $ (1,744,932) $ (3,727,775) $ (187,397) $ (7,152,160) $ (12,812,264) Total assets $ 2,578,514 $ 30,026,314 $ 23,788,451 $ 49,305,635 $ 105,698,914 Heat and Power Technology Construction Production Corporate Consolidated June 30, 2014 Revenues $ 281,235 $ 3,487,117 $ - $ - $ 3,768,352 Cost of Sales 139,923 2,681,319 - - 2,821,242 Depreciation and amortization 685,683 943,686 - 396,389 2,025,578 General and administrative 1,325,794 1,961,396 - 5,506,832 8,794,201 Other income (expense) (26,800) 158,059 - (440,396) (309,137) Discontinued operations - - - (216,496) (216,496) Net income (loss) $ (1,896,965) $ (1,941,225) $ - $ (6,560,112) $ (10,398,302) Total assets $ 1,496,514 $ 7,619,491 $ - $ 79,072,866 $ 88,188,871

Investment in Equity Subsidiary

Investment in Equity Subsidiary Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Investment in Equity Subsidiary Disclosure	NOTE 10 - INVESTMENT IN EQUITY SUBSIDIARY On October 30, 2014, the Company closed on an agreement to acquire shares of PowerGenix common stock for $10 million payable through a combination of cash ($2 million) and Company restricted common shares (3,729,604) valued at $2.145 per share. The restricted shares are subject to a lock up/leak out agreement. Reciprocal equity ownership is designed to fund PowerGenix and maximize the working relationship between the two companies. The Company’s ownership constitutes 24.4% of the equity of PowerGenix. The Company has been granted exclusive marketing rights to use the proprietary PowerGenix Nickel-Zinc (“NiZn”) batteries to produce intelligent digital NiZn energy storage systems using the Company’s proprietary intellectual property for a number of market verticals including: Stationary UPS Systems in the Data Center, Military, Telecom, Utility, Renewable Energy, Motor Start-Up, Frequency Regulation, Peak Shaving/Shifting and Demand Shifting market segments. The marketing rights are global for most market verticals. During the six months ended June 30, 2015, PowerGenix realized a net loss of $5,622,397. Accordingly the Company recognized 24.4% of the net loss in the amount of $1,292,050. During the six months ended June 30, 2015, the Company completed its cash obligation by investing an additional $400,000 into PowerGenix. Summarized financial information as of June 30, 2015 and for the six months then ended of PowerGenix is presented as follows: Total Assets $ 3,295,020 Total Liabilities $ 4,337,921 Net Income (Loss) $(5,622,397)

Restated Financial Statements D

Restated Financial Statements Disclosure	6 Months Ended
	Jun. 30, 2015
Notes
Restated Financial Statements Disclosure	NOTE 11 - RESTATED FINANCIAL STATEMENTS The Company has restated its financial statements to present on a retroactive basis the effect of several Type 1 subsequent events including the resolution of certain litigation and the discontinuance of a significant component of its operations. This restatement is prepared in accordance with Topic 13 of the Financial Reporting Manual of the Securities and Exchange Commission. The restated financial statements reflect the accrual of $2,437,618 of losses associated with the settlement of litigation subsequent to December 31, 2014 on a retroactive basis as of and for the year ended December 31, 2014. The restated financial also reflect the reclassification of the assets, liabilities and operations of BEEMS to discontinued operations. The following table presents a summarized comparison of the original consolidated balance sheets to the restated balance sheets: BLUE EARTH, INC. AND SUBSIDIARIES Consolidated Balance Sheets ASSETS June 30, June 30, December 31, December 31, 2015 2015 2014 2014 (restated) (original) (restated) (original) (unaudited) CURRENT ASSETS $ 9,791,703 $ 9,791,703 $ 11,362,284 $ 11,362,283 PROPERTY AND EQUIPMENT, net 65.654,594 65,654,593 56,815,626 56,815,626 DISCONTINUED OPERATIONS 995,583 1,591,200 1,221,631 1,817,247 OTHER ASSETS 29,257,035 29,257,035 32,744,205 32,744,205 TOTAL ASSETS $ 105,698,914 $ 106,294,531 $ 102,143,746 $ 102,739,361 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES $ 21,311,287 $ 20,444,911 $ 8,413,959 $ 5,976,340 LIABILITIES OF DISCONTINUED OPERATIONS 937,134 937,134 354,665 354,664 Total Liabilities 22,248,421 21,382,045 8,768,624 6,331,004 STOCKHOLDERS' EQUITY Preferred stock; 25,000,000 shares authorized at $0.001 par value, 400,000 and -0- shares issued and -0- and -0- shares outstanding, respectively 400 400 - - Common stock; 500,000,000 shares authorized at $0.001 par value, 94,531,461 and 94,258,713 shares issued and outstanding, respectively 94,532 94,532 94,259 94,259 Additional paid-in capital 193,046,894 193,046,894 188,159,932 188,159,932 Stock subscription receivable (2,000,000) (2,000,000) - - Accumulated deficit (107,691,333) (106,229,340) (94,879,069) (91,845,834) Total Stockholders' Equity 83,450,493 84,912,486 93,375,122 96,408,357 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 105,698,914 $ 106,294,531 $ 102,143,746 $ 102,739,361 The following table presents a summarized comparison of the original consolidated statements of operations to the restated statements of operations: BLUE EARTH, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) For the Six Months Ended June 30, 2015 2015 2014 2014 (restated) (original) (restated) (original) REVENUES $ 7,328,414 $ 7,328,414 $ 3,768,352 $ 3,768,352 COST OF SALES 6,631,211 6,631,211 2,821,242 2,821,242 GROSS PROFIT 697,203 697,203 947,110 947,110 OPERATNG EXPENSES 12,452,969 12,452,968 10,819,779 10,819,779 LOSS FROM OPERATIONS (11,755,766) (11,755,765) (9,872,669) (9,872,669) OTHER INCOME (EXPENSE) (144,671) (1,715,914) (309,137) (309,137) LOSS BEFORE INCOME TAXES (11,900,437) (13,471,679) (10,181,806) (10,181,806) INCOME TAX EXPENSE - - - - LOSS FROM CONTINUING OPERATIONS (11,900,437) (13,471,679) (10,181,806) (10,181,806) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS, net of income taxes of $0 - (207,473) - - LOSS FROM DISCONTINUED OPERATIONS, net of income taxes of $0 (911,827) (704,354) (216,496) (216,495) NET LOSS (12,812,264) (14,383,506) (10,398,302) (10,398,301) PREFERRED DIVIDENDS - - (1,489,703) (1,489,703) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (12,812,264) $ (14,383,506) $ (11,888,005) $ (11,888,004) BASIC AND DILUTED LOSS PER SHARE Continuing Operations $ (0.13) $ (0.14) $ (0.16) $ (0.16) Discontinued Operations (0.01) (0.01) (0.00) (0.00) Net Loss Per Share $ (0.14) $ (0.15) $ (0.16) $ (0.16) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED 93,772,326 93,772,326 63,866,054 63,866,054

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Notes
Subsequent Events	NOTE 12 - SUBSEQUENT EVENTS On July 2, 2015, the Company collected the $2,000,000 stock subscription receivable. On July 13, 2015, the Company issued 13,158 shares of its common for consulting services. On July 17, 2015, the Company granted 250,000 common stock purchase warrants to consultants. The warrants have an exercise price of $1.02 per share and a term of 3 years. On July 27, 2015 the Company issued 12,500 shares of its common stock to a director for his services. On August 3, 2015, the Company granted 440,000 non-qualified stock option shares to an employee. The shares have an exercise price of $0.87 per share. 110,000 shares will vest immediately and 110,000 shares shall vest on first, second and third anniversary dates of employment. On July 17, 2015 the Company’s shareholders approved an increase in the authorized shares of common stock under the 2009 Equity Incentive Plan from 4,542,000 to 8,542,000 shares. The current market value of such common stock was $1.51 per share, as of May 26, 2015. The 2009 Plan is intended to encourage stock ownership by the Company’s directors, officers, employees and consultants, and of its subsidiaries, and thereby enhance their proprietary interest in the Company. The Company amended its Registration Statement on Form S-8 to register the additional options and underlying common stock issuable under the 2009 Plan. On July 31, 2015, the Company sold the majority of the remaining BEEMS business assets for cash of $216,771 and the assumption of the liabilities for the BEEMS service vehicles. The insignificant remainder of the BEEMS operations will be liquidated or absorbed into other segments of the Company’s operations. In accordance with ASC 855-10, the Company’s management has reviewed all material events and there are no additional material subsequent events to report.

Significant Accounting Polici18

Significant Accounting Policies: Inventory, Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Inventory, Policy	Inventory Inventory is recorded at the lower of cost or market (net realizable value) using the average cost method. The inventory on hand as of June 30, 2015 consists of battery and battery components of $475,714. The inventory is valued net of an allowance of $6,188 as of June 30, 2015. The Company does not have any work in progress.

Significant Accounting Polici19

Significant Accounting Policies: Use of Estimates (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Significant Accounting Polici20

Significant Accounting Policies: Revenue Recognition Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Revenue Recognition Policy	Revenue Recognition Construction Revenues Service Contracts Product Sales

Significant Accounting Polici21

Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had, nor is expected to have a material impact on the Company’s financial position, or statements.

Significant Accounting Polici22

Significant Accounting Policies: Capitalization of Construction Period Interest Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Capitalization of Construction Period Interest Policy	Capitalization of Construction Period Interest The Company capitalizes construction period interest as required under ASC 835-20. Both directly attributable borrowing costs and borrowing costs from a general fund are required to be capitalized. Until March 2015, the Company had no material interest expense. During March 2015, the Company borrowed $13,000,000 in part to fund the construction of its CHP projects. The convertible note payable and the credit line payable accrue interest at 12% per annum. The Company will capitalize the appropriate interest cost in accordance with ASC 835-20-25-8 through the completion of the construction of each project. The Company capitalized interest of $1,420,890 during the six months ended June 30, 2015.

Significant Events Disclosure_

Significant Events Disclosure: Convertible Debt Table (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Convertible Debt Table	Balance at December 31, 2014 $ -- Borrowing of convertible note payable 10,000,000 Discount on convertible note payable (2,196,691) Amortization of discount 1,280,811 Balance at June 30, 2015 $ 9,084,120

Stock Purchase Warrants and O24

Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity Note, Warrants (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Stockholders' Equity Note, Warrants	Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Warrants Price Term Value Balance Outstanding, December 31, 2013 22,660,668 $ 1.90 6.52 $ 43,055,269 Granted 200,000 $ 0.00 10.00 Granted 100,000 $ 1.00 10.00 Granted 8,521,654 $ 6.00 3.00 Cancelled (3,600,000) $ (1.18) -- Forfeited (1,472,060) $ (1.90) -- Exercised (9,778,344) $ (1.60) -- Balance Outstanding, December 31, 2014 16,631,918 $ 3.80 5.29 $ 53,353,862 Granted 2,000,000 $ 1.00 5.00 Granted 300,000 $ 1.08 5.00 Granted 833,334 $ 1.60 5.00 Balance Outstanding, June 30, 2015 19,765,252 $ 3.16 4.41 $ 62,385,196 Exercisable, June 30, 2015 16,724,775 $ 3.38 3.94 $ 56,467,004

Stock Purchase Warrants and O25

Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity, Options (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Stockholders' Equity, Options	Weighted Weighted Average Average Remaining Aggregate No. of Exercise Contractual Intrinsic Options Price Term Value Balance Outstanding, December 31, 2013 1,011,290 $ 1.85 8.22 $ 1,851,695 Granted 1,500,000 $ 2.00 10 Granted 150,000 $ 3.00 10 Granted 120,000 $ 2.45 10 Granted 60,000 $ 2.27 10 Granted 105,000 $ 3.10 10 Granted 60,000 $ 2.45 10 Granted 100,000 $ 2.54 10 Granted 10,000 $ 1.29 10 Granted 52,720 $ 1.37 10 Granted 5,000 $ 0.75 10 Forfeited (492,119) $ (3.37) -- Exercised (85,024) $ (1.36) -- Balance Outstanding, December 31, 2014 2,596,867 $ 2.54 8.82 6,596,037 Granted 30,000 $ 1.20 10 Granted 100,000 $ 1.01 10 Granted 12,500 $ 1.21 10 Granted 5,000 $ 0.98 10 Granted 15,000 $ 0.97 10 Granted 7,500 $ 0.90 10 Granted 5,000 $ 0.92 10 Granted 35,000 $ 1.11 10 Granted 74,000 $ 1.15 10 Forfeited (68,513) $ (2.24) -- Balance Outstanding, June 30, 2015 2,812,354 $ 2.42 8.41 $ 6,804,139 Exercisable, June 30, 2015 1,379,194 $ 1.96 8.01 $ 2,697,170

Fair Value of Financial Instr26

Fair Value of Financial Instruments Disclosure: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Fair Value, Assets Measured on Recurring and Nonrecurring Basis	Liabilities: Total Carrying Value at June 30, 2015 (Level 1) (Level 2) (Level 3) Natural gas futures $ 2,251,711 $ 2,251,711 $ - $ -

Fair Value of Financial Instr27

Fair Value of Financial Instruments Disclosure: Summary of Activity of Level 1 Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Summary of Activity of Level 1 Assets	Balance at December 31, 2013 $ -- Purchases of futures contracts 2,429,150 Change in fair value 2014 (2,884) Balance at December 31, 2014 2,426,266 Purchases of futures contracts -- Change in fair value 2015 (174,555) Balance at June 30, 2015 $ 2,251,711

Property and Equipment Disclo28

Property and Equipment Disclosure: Schedule of Major Classes of Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Major Classes of Assets	June 30, 2015 December 31, 2014 Office and computer equipment $ 350,609 $ 327,023 Software 91,256 91,256 Manufacturing and installation equipment 455,150 442,450 Leasehold improvements - 759,304 Cogeneration plants 65,332,429 56,022,580 Vehicles - - Sub Total 66,231,444 57,642,613 Accumulated depreciation (576,851) (826,987) Net $ 65,654,593 $ 56,815,626

Discontinued Operations Discl29

Discontinued Operations Disclosure: Discontinued Operations, Summary of Transactions (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Discontinued Operations, Summary of Transactions	Sales Price $ 790,771 Inventory (105,612) Intangible assets (245,825) Commission paid (40,250) Vehicles net book value (38,082) Gain on sale of website and service and installation division 361,002 Impairment of net assets of BEEMS (956,618) Loss on Disposal of Discontinued Operations $ (595,616)

Operating Segments Disclosure_

Operating Segments Disclosure: Schedule of Segment Reporting Information, by Segment (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Segment Reporting Information, by Segment	Heat and Power Technology Construction Production Corporate Consolidated June 30, 2015 Revenues $ 248,270 $ 7,078,545 $ 1,599 $ - $ 7,328,414 Cost of Sales 232,591 6,398,620 - - 6,631,211 Depreciation and amortization 449,315 937,210 549 769,651 2,156,725 General and administrative 1,268,165 3,479,360 13,893 5,534,825 10,296,244 Other income (expense) (43,131) 8,870 (174,554) 64,143 (1,444,671) Discontinued operations - - - (911,827) (911,827) Net income (loss) $ (1,744,932) $ (3,727,775) $ (187,397) $ (7,152,160) $ (12,812,264) Total assets $ 2,578,514 $ 30,026,314 $ 23,788,451 $ 49,305,635 $ 105,698,914 Heat and Power Technology Construction Production Corporate Consolidated June 30, 2014 Revenues $ 281,235 $ 3,487,117 $ - $ - $ 3,768,352 Cost of Sales 139,923 2,681,319 - - 2,821,242 Depreciation and amortization 685,683 943,686 - 396,389 2,025,578 General and administrative 1,325,794 1,961,396 - 5,506,832 8,794,201 Other income (expense) (26,800) 158,059 - (440,396) (309,137) Discontinued operations - - - (216,496) (216,496) Net income (loss) $ (1,896,965) $ (1,941,225) $ - $ (6,560,112) $ (10,398,302) Total assets $ 1,496,514 $ 7,619,491 $ - $ 79,072,866 $ 88,188,871

Investment in Equity Subsidia31

Investment in Equity Subsidiary Disclosure: Summarized financial information, Equity Method Investment (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Summarized financial information, Equity Method Investment	Total Assets $ 3,295,020 Total Liabilities $ 4,337,921 Net Income (Loss) $(5,622,397)

Restated Financial Statements32

Restated Financial Statements Disclosure: Restated Statements of Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Restated Statements of Operations	BLUE EARTH, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) For the Six Months Ended June 30, 2015 2015 2014 2014 (restated) (original) (restated) (original) REVENUES $ 7,328,414 $ 7,328,414 $ 3,768,352 $ 3,768,352 COST OF SALES 6,631,211 6,631,211 2,821,242 2,821,242 GROSS PROFIT 697,203 697,203 947,110 947,110 OPERATNG EXPENSES 12,452,969 12,452,968 10,819,779 10,819,779 LOSS FROM OPERATIONS (11,755,766) (11,755,765) (9,872,669) (9,872,669) OTHER INCOME (EXPENSE) (144,671) (1,715,914) (309,137) (309,137) LOSS BEFORE INCOME TAXES (11,900,437) (13,471,679) (10,181,806) (10,181,806) INCOME TAX EXPENSE - - - - LOSS FROM CONTINUING OPERATIONS (11,900,437) (13,471,679) (10,181,806) (10,181,806) LOSS ON DISPOSAL OF DISCONTINUED OPERATIONS, net of income taxes of $0 - (207,473) - - LOSS FROM DISCONTINUED OPERATIONS, net of income taxes of $0 (911,827) (704,354) (216,496) (216,495) NET LOSS (12,812,264) (14,383,506) (10,398,302) (10,398,301) PREFERRED DIVIDENDS - - (1,489,703) (1,489,703) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (12,812,264) $ (14,383,506) $ (11,888,005) $ (11,888,004) BASIC AND DILUTED LOSS PER SHARE Continuing Operations $ (0.13) $ (0.14) $ (0.16) $ (0.16) Discontinued Operations (0.01) (0.01) (0.00) (0.00) Net Loss Per Share $ (0.14) $ (0.15) $ (0.16) $ (0.16) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED 93,772,326 93,772,326 63,866,054 63,866,054

Significant Accounting Polici33

Significant Accounting Policies: Inventory, Policy (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Details
Inventory on hand	$ 475,714	$ 352,862
Inventory is valued net of an allowance of	$ 6,188

Significant Accounting Polici34

Significant Accounting Policies: Capitalization of Construction Period Interest Policy (Details)	6 Months Ended
	Jun. 30, 2015USD ($)
Details
Capitalized interest	$ 1,420,890

Significant Events Disclosure (

Significant Events Disclosure (Details) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Jul. 31, 2015	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Gain (loss) on settlement of litigation		$ 988,882	$ 1,978,660
Line of credit payable		$ 3,000,000	3,000,000
Proceeds from line of credit			$ 2,911,700
Series D Preferred Stock issued		400,000	400,000
Related party notes payable		$ 1,333,147	$ 1,333,147		$ 1,333,147
Proceeds from notes payable			9,953,068	$ 183,622
Capitalized interest			1,420,890
Line of credit fees
Prepaid expenses		88,300	88,300
Convertible Note Payable legal fees
Prepaid expenses		$ 46,932	$ 46,932
Common shares for services
Common stock issued	13,158		596,565
Proceeds from or value of stock issued			$ 567,104
Common shares for debt issuance costs
Common stock issued			200,000
Proceeds from or value of stock issued			$ 226,000
Common stock for subscription agreement
Common stock issued			1,666,667
Proceeds from or value of stock issued	$ 2,000,000
As consideration for a loan
Common stock issued			200,000
Proceeds from or value of stock issued			$ 226,000
Warrants issued for debt			2,000,000
Value of the warrants issued			$ 1,321,600
Capitalized interest			$ 1,280,811

Significant Events Disclosure36

Significant Events Disclosure: Convertible Debt Table (Details)	Jun. 30, 2015USD ($)
Details
Convertible note payable	$ 9,084,120

Stock Purchase Warrants and O37

Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity Note, Warrants (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Warrants outstanding	19,765,252	16,631,918	22,660,668
Weighted average exercise price, warrants outstanding	$ 3.16	$ 3.80	$ 1.90
Aggregate intrinsic value, warrants outstanding	$ 62,385,196	$ 53,353,862	$ 43,055,269
Warrants exercised		(9,778,344)
Weighted average exercise price, warrants exercised		$ (1.60)
Warrants exercisable	16,724,775
Weighted average exercise price, warrants exercisable	$ 3.38
Aggregate intrinsic value, warrants exercisable	$ 56,467,004
Grant (1)
Warrants granted	2,000,000	200,000
Weighted average exercise price, warrants granted	$ 1
Grant (2)
Warrants granted	300,000	100,000
Weighted average exercise price, warrants granted	$ 1.08	$ 1
Grant (3)
Warrants granted	833,334	8,521,654
Weighted average exercise price, warrants granted	$ 1.60	$ 6

Stock Purchase Warrants and O38

Stock Purchase Warrants and Options Disclosure: Schedule of Stockholders' Equity, Options (Details) - USD ($)	6 Months Ended	12 Months Ended	24 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Stock options outstanding	2,812,354	2,596,867	2,596,867	1,011,290
Weighted average exercise price, options outstanding	$ 2.42	$ 2.54	$ 2.54	$ 1.85
Aggregate intrinsic value, option outstanding	$ 6,804,139	$ 6,596,037	$ 6,596,037	$ 1,851,695
Stock options forfeited	(68,513)	(492,119)
Weighted average exercise price, options forfeited	$ (2.24)	$ (3.37)
Stock options exercised			(85,024)
Weighted average exercise price, options exercised		$ (1.36)
Stock options exercisable	1,379,194
Weighted average exercise price, options exercisable	$ 1.96
Aggregate intrinsic value, options exercisable	$ 2,697,170
Grant (1)
Stock options granted	30,000	1,500,000
Weighted average exercise price, options granted	$ 1.20	$ 2
Grant (2)
Stock options granted	100,000	150,000
Weighted average exercise price, options granted	$ 1.01	$ 3
Grant (3)
Stock options granted	12,500	120,000
Weighted average exercise price, options granted	$ 1.21	$ 2.45
Grant (4)
Stock options granted	5,000	60,000
Weighted average exercise price, options granted	$ 0.98	$ 2.27
Grant (5)
Stock options granted	15,000	105,000
Weighted average exercise price, options granted	$ 0.97	$ 3.10
Grant (6)
Stock options granted	7,500	60,000
Weighted average exercise price, options granted	$ 0.90	$ 2.45
Grant (7)
Stock options granted	5,000	100,000
Weighted average exercise price, options granted	$ 0.92	$ 2.54
Grant (8)
Stock options granted	35,000	10,000
Weighted average exercise price, options granted	$ 1.11	$ 1.29
Grant (9)
Stock options granted	74,000	52,720
Weighted average exercise price, options granted	$ 1.15	$ 1.37
Grant (10)
Stock options granted		5,000
Weighted average exercise price, options granted		$ 0.75

Fair Value of Financial Instr39

Fair Value of Financial Instruments Disclosure: Summary of Activity of Level 1 Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Details
Purchases of futures contracts		$ 2,429,150
Change in fair value, assets	$ (174,555)	(2,884)
Fair Value, Level 1 Assets	$ 2,251,711	$ 2,426,266

Property and Equipment Disclo40

Property and Equipment Disclosure: Schedule of Major Classes of Assets (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Property and Equipment, asset value	$ 66,231,444	$ 57,642,613
Accumulated depreciation on property and equipment assets	(576,851)	(826,987)
Property and equipment, asset value, Net	65,654,593	56,815,626
Computer Equipment
Property and Equipment, asset value	350,609	327,023
Software and Software Development Costs
Property and Equipment, asset value	91,256	91,256
Other Machinery and Equipment
Property and Equipment, asset value	455,150	442,450
Leasehold Improvements
Property and Equipment, asset value		759,304
Cogeneration plants
Property and Equipment, asset value	$ 65,332,429	$ 56,022,580

Commitments and Contingencies41

Commitments and Contingencies Disclosure (Details)	6 Months Ended
	Jun. 30, 2015USD ($)
Litigation settlement to be paid	$ 1,270,000
Equipment Purchase Agreements
Commitment to pay	19,536,518
Deposits made toward purchase	$ 16,183,490

Discontinued Operations Discl42

Discontinued Operations Disclosure (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Details
Revenues of the discontinued operations	$ 3,227,539	$ 3,026,437

Operating Segments Disclosure43

Operating Segments Disclosure: Schedule of Segment Reporting Information, by Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
REVENUES	$ 3,576,400	$ 1,889,184	$ 7,328,414	$ 3,768,352
COST OF SALES	3,208,867	1,569,616	6,631,211	2,821,242
Depreciation and amortization	1,075,146	1,076,938	2,156,725	2,025,758
General and administrative	5,219,864	3,769,113	10,296,244	8,794,021
Total Other Income (Expense)	(328,204)	(91,305)	(144,671)	(309,137)
Income (Loss) from Discontinued Operations	(249,700)	(94,052)	(911,827)	(216,495)
Net income (loss)	(6,505,381)	(4,711,842)	(12,812,264)	(10,398,302)
Total Assets	105,698,914	88,188,871	105,698,914	88,188,871	$ 102,143,746
Technology Segment
REVENUES			248,270	281,235
COST OF SALES			232,591	139,923
Depreciation and amortization			449,315	685,683
General and administrative			1,268,165	1,325,794
Total Other Income (Expense)			(43,131)	(26,800)
Net income (loss)			(1,744,932)	(1,896,965)
Total Assets	2,578,514	1,496,514	2,578,514	1,496,514
Construction Segment
REVENUES			7,078,545	3,487,117
COST OF SALES			6,398,620	2,681,319
Depreciation and amortization			937,210	943,686
General and administrative			3,479,360	1,961,396
Total Other Income (Expense)			8,870	158,059
Net income (loss)			(3,727,775)	(1,941,225)
Total Assets	30,026,314	7,619,491	30,026,314	7,619,491
Heat and Power Production Segment
REVENUES			1,599
Depreciation and amortization			549
General and administrative			13,893
Total Other Income (Expense)			(174,554)
Net income (loss)			(187,397)
Total Assets	23,788,451		23,788,451
Corporate Segment
Depreciation and amortization			769,651	396,389
General and administrative			5,534,825	5,506,832
Total Other Income (Expense)			64,143	(440,396)
Income (Loss) from Discontinued Operations			(911,827)	(216,496)
Net income (loss)			(7,152,160)	(6,560,112)
Total Assets	$ 49,305,635	$ 79,072,866	$ 49,305,635	$ 79,072,866

Investment in Equity Subsidia44

Investment in Equity Subsidiary Disclosure: Summarized financial information, Equity Method Investment (Details)	6 Months Ended
	Jun. 30, 2015USD ($)
Details
PowerGenix assets	$ 3,295,020
PwerGenix liabilities	4,337,921
PowerGenix net income (loss)	$ (5,622,397)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Aug. 03, 2015	Jul. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jul. 17, 2015
Increase in the authorized shares of common stock under the 2009 Equity Incentive Plan							8,542,000
Loss on disposal of discontinued operations		$ 216,771	$ 0	$ 0	$ 0	$ 0
Common stock for subscription agreement
Proceeds from or value of stock issued		$ 2,000,000
Common stock issued					1,666,667
Common shares for services
Proceeds from or value of stock issued					$ 567,104
Common stock issued		13,158			596,565
Common stock purchase warrants to consultants
Common stock issued		250,000
Common shares for services - director
Common stock issued		12,500
Non-qualified stock option shares
Common stock issued	440,000